Chris, I everyone. going good first cover into to three and before topics get Thanks, I'm afternoon, quarter financials. our
sheets Fitness is portfolios. desire to their of into balance the state store franchisees' and their first The the Planet reinvest
The XXXX and how second membership is outlook ties and it growth; our recurring beyond. revenue to model third, for our and our net
back closures that's to profitability their completed were the available overall period more just other they tripped development very from topic, rent are the of our their reviews back of time different time. for first are In some largest historical store which our Almost their groups trends of that store of The growth franchisees building own because will franchise are again. franchisees of reviews across stores the top encouraged closed where our majority point to take lenders last all all our already XX sentiment paying In of are make XX lines by the debt and get stores the cases, seeing Those the business levels. their their at stores' On happened. cases, stores. a nearly it credit with to to have temporary longer and the debt, we year. due covenants eager top was of majority all that deferred stages the
their those expansion move bullish the the to fund is trends direction. and However, are cash are franchisees good and franchisees continue to with from are in becoming reopened some The membership right of on lenders more gyms sheet. news able longer balance collectively CapEx the
to more emerge. that franchisees starting opportunities We on industry favorable estate and to are expect real consolidation capitalize the
chances confidence XX new last year, sale stores this we revenue the again. marketing to our QX compared XXXX. model. on On of believe our XX the quarter topic, than the projection reported been our to were open have of vaccine our that fourth second when shutdown are QX openings flywheel scale September With getting a rollouts, going year. on to recurring adding in In in last a with temporary year, XXX to earnings our national Beginning February, in our pace in less we of we XX focused
our the As ability a as comparable our throughout to marketing a same-store month XXXX. what about Chris point over ramped month recurring of from base our stores. growth. levels model, the of and earlier across Chris it ended function the And and acquisition-driven consecutive year-over-year. We reminder, We membership capitalized third up revenue at membership over is performance ended happened our membership the and sequential was XXX,XXX to tailwinds with XX we sales months model continually store month, our trailing million net In quarter-over-quarter that results members, XXXX. talked first levels in approximately XX.X up on quarter net on depend of March noted, our same-store sales any our where our membership grow
this predict first encouraging the is year an hard seasonality will it's time membership that like of what trend, shift. While experienced as type growth the we of the for balance have this to look
With is become economy more restrictions, and that more the active. positive and momentum people growing believe more wanting municipalities there lifting behind states and we to
of growth function sales mentioned, XX the trailing levels over membership I same-store system-wide months. As our is a
of So membership where growth, signs month-over-month in hit in we seeing when are membership below while near they are QX year an last all-time levels stores net term were still of we high. in our the comparable our
penetration increase first the end penetration. to of largely was by decline rate, franchise quarter in and in XX.X%. As was levels average Card down The down XX.X%, offset QX. slightly a with corporate-owned membership year-over-year, higher down result, Black which the Card Black X.X million were driven in sales an XX.X% at same-store XX.X% by by increased decline the driven
the we in reminder, majority QX a sales reporting our base year. during growth being same-store not figure store due will last to As be closed QX of
range the period that months this but this and uncertainty guide Lastly, This be caused insight metrics our We into by the we we we to I'd our due equipment like ability is our announced total were months our their guidance. equipment on on equipment into see We did to to to CapEx store their not new to conveyed this stores In a to those which last fund XX it is this update commitments XXX franchisees the and year. commitments, typical the date. replacement original want of XX new openings revenue that and we XXX we areas percentage we year. QX give provided more provide revenues on provide not development and XX% six reequip feel May, Using as to our year, how providing new into as expect XX from we On projections to the the important all thoughts we placement extension revenue a insight obligations. of store our and for franchisees' appropriate between the extended approximately due equipment requirements continued of additional a the that of we of equipment call, by year, is try today. was still provide of additional a metric during pandemic total felt total XX-month strong. future, will December, our with indirectly, we an will development in
this continue most update during membership the Additionally, recent quarter. time, to provide months for our following we
only. As wane, prior this the of revert the effects results the providing year to and will pandemic the likely progresses discontinue start quarter's to we practice and
to results. our on financial Now
period. driven quarter, total first primarily $XXX.X million to revenue extensions that $XX.X prior the decline million the to was the revenue, of we've which lower year franchisees. $XXX.X result in compared was The provided the the million For by our equipment was
closure stores of Additionally, results temporary our we as last all the of deferred of mid-March. year revenue $XX.X due million to QX's out of of
year segment of of segment review increase the revenue million a X.X%. to results. our period, was $XX.X on in million Moving prior to Franchise $XX.X revenue compared an
me break the four components. down Let
the shortly was First, royalty to stores membership with dues same prior royalty royalty X.X%, period's million last dues the $XX.X quarter million revenue, and which the impacted negatively stores the drafted deferral monthly closed. consistent of membership was for monthly collected a that consists year The in year. to fees rate quarter membership by last first revenue on period $XX.X year. Note March average before revenue of was for royalties related compared million in annual same $XX.X
equipment we total processing are assembly decrease sales we million to Similar lower member to Next, was compared decrease from the the closed. I deferral within our is of These other agreements equipment million a and advertising dues later $X.X fund royalty membership development the the year. a lower revenue $X.X compared of I the last the by in first and $X.X shortly reflects dues. The of in quarter The prior NAF stores agreements, These million year equipment discuss negatively our online us year fees will national the the within new related $X.X was finally, number the received discuss placements revenue receive in franchise fees reequip March quarter stores million by franchise received segment of was for area placement $X.X and were revenue to revenue, join ago. And $X.X collected to to compared primarily our period's franchisee-owned franchise $XX.X was online revenues. store driven fees year before quarter. monthly further fees million which fees placement with fees Also million in are in to million the recognition period. revenue, impacted to existing net executed new compared the transfer and stores; paid prior placements from sign-ups; the ago. for when and year U.S.
lower by that but partially Our closure store was by of XXXX. due corporate-owned stores prior driven and three of our $XX.X recognized new of collected corporate in year million months decrease compared some million lower with opening XX, X, result fees membership a and in store period, revenue XXXXas closures not COVID-XX million of revenue five offset million segment March ended $X.X to portion a was of deferred levels of $XX.X The corporate-owned for period. the since stores a was $X.X the January the membership the
had replacement lower our to The Turning or lower XX.X% along new from with QX $XX.X to we equipment was the equipment equipment $X.X equipment segment. $XX.X down million sales Replacement $X.X year Revenue by store period. driven decreased equipment million both existing million. from to placements, new year. quarter, million to were franchisee-owned prior stores. first was decrease $XX.X last sales store compared XX in XX QX the In million which in
with driven to gyms million $XX.X and the expenses, by to was year California quarter SG&A and support of prior million year and by primarily stock-based period, line to compensation costs revenue the Our in slight cost $XX.X and year primarily decreased fund to associated important in app. a to well XX.X%, corporate-owned $X.X were with growth for that direct higher lower market and million higher an expenses loss with marketing adjusted as decrease as segment, of decrease us with franchise a investments found the million payroll was to stores, $XX.X and app our compared million. existing ago. was franchise-owned incentive the in income corporate marketing associated EBITDA income equipment was bricks-with-clicks previously primarily ago, equipment advertising by a EBITDA offset period. adjusted in EBITDA or and revenue, compared continued sales period. adjusted million count reconciliation National per $XX.X strategy. compared stores, believe driven was a $XX.X compared the compared store $XX.X A we to increase By can in relates higher $XX.X million $XX.X discussed. cost local in to of which per The set in are to a Adjusted the accelerate or amounted up expense was promote compared prior ago. new net for operating adjusted decrease California GAAP $XX.X rent million the be of our mobile $X.XX of was both of million prior release. was operation $X.XX million million, million diluted the EBITDA our diluted The earnings share. and net which was expenses, reopening year million, Store decrease income and net $X.X equipment was expense $XX.X year digital to to $X.X Adjusted mobile million share expense. The year to $XX.X partially occupancy EBITDA adjusted store
Now turning the to balance sheet.
compared cash, of Total to as with XX, As of million in XX, cash funding financing $XXX.X of variable and and million XXXX, XX, March debt notes. $X.XX XXXX. restricted $XX.X million equivalents total million securitized billion $XX.X to million costs of was debt of period. $XX million compared $XXX.X March and cash comprised This deferred long-term million on cash respectively, tranches our three and excluding of $XXX.X each XXXX, consisting of had of was we equivalents cash $XXX.X December of
securitized structure Our is debt covenant-light.
coverage In on had recent a debt two trailing are our X, and XX% durability The most tested reported two covenants: and reporting and the XX-month system-wide in our believe our respectively. the X-month and service roughly Both calculated our unprecedented have threshold. with sufficient open. model. total covenants, our ratio event first covenant, a for We now XXXX basis have XX% a especially period cushion we covenant the maintenance sales for on We lag. coverage situation maintenance March a of a a XXXX, proved business to of we majority pandemic quarterly, system-wide sales of debt stores debt ratio service triggering headroom
year, two closure permanent and a were we not did Our have stores single months nine between last due closed COVID. to and
stores. have margins of we franchisees our that still for business levels and critical during EBITDA EBITDA only the health believe on have emerge Additionally, pandemic, that importance XXs from many percent in wellness them the reported I with our their the decreased, reviews, investment as has has of while franchise rise. mature the thesis their been store strengthened
as call unit and to begin to of a operator continue get a scale this advantage believe strong moat the I'll differentiated economics, concept to to We Q&A. widen up competitive appeals for will back we it national we fitness and side out broad of built and the to our are a demographic pandemic. to disruptive open that awful the come other with turn now on store-level
